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Two major errors you must avoid when storing your accounting records

by , 29 July 2014
You have to keep your company's accounting records to comply with the Companies Act. The amount of time you must keep them depends on the documents, but you'll have to keep most of them for at least five years.

To comply with this law, you need to ensure you keep your financial records somewhere safe. This isn't hard unless you make either of these two major errors when storing your accounting records...


To store your accounting records accurately, avoid these two errors

If SARS decides to audit your company, it'll want to see your accounting records. To ensure you can show it your bookkeeping, you must store them correctly.

To do this, you need to avoid these two major errors:

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Does your CC follow the CC Act or the Companies Act?
 
Do it right or face penalties
 
 
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Error #1: Storing your accounting records in a single physical form. If you print out your accounting records so you can store them in a physical form and then delete them from your computer, you're asking for trouble.
 
Physical copies can easily go missing, so don't rely on them. Keep a digital copy and, if you need to clear space on your computer, save them to an external hard drive. This ensures you always have a copy even if you lose the physical copy.
 
Error #2: Saving your digital copies of your accounting records in an open folder on your company's shared drive. If you do this, it's very easy for your employees to accidently change or delete your accounting records.
 
Store these records in a folder that only you, your accounting, payroll manager and CFO can access. This will ensure no one changes your records without authorisation.
 
If you can avoid these two major mistakes, you'll be able to ensure your accounting records are always exactly where you need them to be. 
 


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